The beta only works on Windows Mobile 5 (apparently it can't be back ported very well to Windows Mobile 2003 as it would be missing features that Windows Mobile 5 can offer) and features include Windows Live Messenger, Mail, Contacts, Search, Local Search; the ability to add RSS feeds, and several other applications. In addition to sending text information, it can send and receive pictures (and take them using a camera on your smartphone), documents and voice clips.
Pictures can also be sent directly to your Windows Live Space, and nudges can be sent from a PC to a smartphone running it causing the phone to vibrate (you can't send a nudge from the mobile phone though).
Source (translated): legendsky's blog View screenshots of Windows Live for mobile
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